Vinci SA · EURONEXT:DG
Vinci SA — H1 2014 Earnings Presentation
45 slides from Vinci SA's earnings presentation, Aug 1, 2014
Slide 1: 2014 first half results
2014 first half results 1 August 2014
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking objectives and statements about VINCI’s financial situation, operating results, business activities and expansion strategy. These objectives and statements are based on assumptions that are dependent upon significant risk and uncertainty factors
Slide 3: VINCI Airports concession holder and operator
VINCI Airports is an airport concession holder and operator relying on its expertise in prime contractor services, using its many different skills to ensure optimum handling of its airport platforms. Septembre 2013 Finalisation de l’acquisition d’ANA, concessionnaire pour 50June ans2013des 10 aéropor
Slide 4: VINCI Autoroutes operates 4,386 km of motorways
VINCI Autoroutes operates 4,386 km of motorways under concession in France. Over 2 million customers use the networks every day.
Slide 5: VINCI Energies working on electricity networks in Persian Gulf
VINCI Energies is working on electricity networks in Persian Gulf countries. 5
Slide 6: Eurovia constructed new pavilion at St. Lazare station
Eurovia constructed the new pavilion in front of the St. Lazare train station in Paris, France, opened to public in April 2014. 6
Slide 7: VINCI Construction completed PNG LNG pipeline section
VINCI Construction recently completed the 292-km onshore section of pipeline on the PNG LNG project, located in Papua New Guinea. 7
Slide 8: VINCI Construction and VINCI Energies project examples
Septembre 2013 Finalisation de l’acquisition As part of the Croix Rousse Tunnel d’ANA, VINCIconcessionnaire Construction pour and VINCI upgrade in Lyon, VINCI Energies installed 50Energies ans des 10 aéroports completed the renovation smart lighting equipment, CCTV, a fire portugais of the building t
Slide 9: 2014 first half highlights
2014 first half highlights Xavier Huillard, Chairman and CEO
Slide 10: A solid economic performance on a global scale
A solid economic performance on a global scale Group revenue +0.7 % like-for-like Group EBIT margin expansion +40 bp Group net income +77% ex-non-recurring items: stable Order book at 30 June €29.6 bn stable vs. 31 Dec. 2013 Interim dividend to be paid 13 November 2014 €1.00 per share of which €0.45
Slide 11: VINCI Autoroutes
VINCI Autoroutes Traffic growth back on track for both LV and HV 120 LV HV Total 115 Revenue €2.2 bn 110 105 100 95 EBITDA margin 90 70.1% 85 +30 bp 80 Change in total traffic over 12 trailing months (number of km travelled) 75 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 12: VINCI Airports
VINCI Airports A high-margin growth driver ! Passenger traffic: 21.6 million Revenue €0.3 bn +8.9% yoy ! Aircraft movements: +5.6% EBITDA margin ! Non æronautical revenue (ANA): +16.8% 44.0% +30 bp ! New line openings (ANA): > 60 2013 2014 Change in passenger traffic Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Cambodia
Slide 13: VINCI Park
VINCI Park Opening of 75% of VINCI Park’s capital finalised on 4 June 2014 New ownership structure for VINCI Park: Management 37.4% 37.4% 24.9% 0.3% ü Enterprise value: € 1.96 bn ü Capital gain (net): € 0.69 bn ü Reduction of VINCI net debt: € 1.68 bn 13
Slide 14: VINCI Energies
VINCI Energies Exploiting leader positions to maintain high level of profitability ! Activity: -2.1% (lfl) Revenue €4.4 bn § France: slightly down - varies according to region § International: growth in Indonesia, the Netherlands, Poland, France €2.6 bn Switzerland; slight decline in Germany; Southe
Slide 15: Eurovia
Eurovia Stable performance in France / International still growing Revenue €3.6 bn ! Activity: +2.2% (lfl) § France: stable thanks to good weather; rail laying benefitting from SEA & LGV Est France €2.3 bn § Germany: increased selectivity of order intake § UK: benefitting from ramp-up of maintenance
Slide 16: VINCI Construction
VINCI Construction Activity benefitting from expanding global footprint Revenue €7.6 bn ! Activity: +0.4% (lfl) § France: stable as Building activity offsets declines in civil/ France €4.3 bn hydraulic engineering, strong activity at SEA § Sogea Satom (Africa): up 13% International €3.3 bn § VCGP: u
Slide 17: 1st half 2014 revenue by geographical area
1st half 2014 revenue* by geographical area Stable in France, Western Europe down, growth everywhere else France -1% 64% Central & Eastern Europe +17% Western 4% Europe -4% (excl. France) 18% Asia/Middle East/ Oceania +11% Americas +8% 5% 4% Africa +8% 5% +X% H1 2014 / H1 2013 change X% Contribution
Slide 18: 2014 first half financial data
2014 first half financial data Christian Labeyrie, Executive Vice-President and CFO
Slide 19: 2014 first half consolidated revenue
2014 first half consolidated revenue Concessions Contracting Immobilier & eliminations +10.7% (3.2%) Scope Organic Scope * Organic & FX growth & FX growth 18,711 18,464 +6.1% +4.6% (3.3%) +0.1% +150 +126 -529 +20 -14 Revenue change (l-f-l): +0.7% +€131 mn 1H 2013 1H 2014 Euros in millions Change 14/1
Slide 20: Operating income from ordinary activities (EBIT)
Operating income from ordinary activities (EBIT) GROUP CONCESSIONS CONTRACTING €1,540 mn +3.6% €1,124 mn +12.8% Margin: 8.3% +40 bp €396 mn -13.7% Margin: 39.4% +70 bp Margin: 2.5% -30 bp VINCI VINCI VINCI VINCI Autoroutes Concessions Energies Eurovia Construction 922 891 307 42.2% 41.9% 235 237 204
Slide 21: Income statement
Income statement (in € millions) 1H 2014 1H 2013 Δ∆ 14/13 Operating income from ordinary activities (EBIT) 1,540 1,487 +3.6% % of revenue 8.3% 7.9% - share-based payment expense (IFRS 2) (42) (43) - operating income of equity-accounted cos. 24 41 - other recurring operating items 13 7 Recurring oper
Slide 22: Change in net financial debt during the first half of 2014
Change in net financial debt during the first half of 2014 (in € billions) Capital Share buybacks increases & (0.8) misc. EBITDA 0.4 (14.9) (14.1) 2.4 Investments (0.7) Dividends Interest & Acquisitions/ taxes paid Disposals (0.7) Δ∆ WCR (1.2) (1.0) 0.8 Free cash flow: €(0.5) bn 1H 2013: €(0.2) bn Cont
Slide 23: Consolidated balance sheet
Consolidated balance sheet (in € millions) 30 June 2014 31 Dec. 2013 Non-current assets – concessions 27,892 29,554 Non-current assets – contracting and other 8,317 8,434 WCR, provisions and other current assets & liabilities (4,762) (6,619) Capital employed 31,447 31,369 Equity (14,301) (14,260) No
Slide 24: Financial policy
Financial policy Optimise average gross financial Anti-dilution strategy debt maturity 2014-2020 maturity schedule (in € bn): €423 mn 2.6 net share buybacks in 1H 2014 (5.2 mn shares) 1.9 2.1 1.6 1.6 Treasury stock : 56.6 mn shares 1.3 as at 30 June 2014 0.3 H2 Decision to cancel 23 mn shares 2014 20
Slide 25: Outlook and strategy
Outlook and strategy Xavier Huillard, Chairman and CEO
Slide 26: Contracting order book
Contracting order book Order book renewed during the 1st half of 2014 Good visibility over remaining 2014 activity Trend less favorable in France since municipal elections (March 2014) Breakdown by geographical area Breakdown by business line Δ∆ 14/13 Δ∆ 14/13 June June 30.6 29.4 29.6 -3% 30.6 29.6
Slide 27: 2014 outlook
2014 outlook Revenue: slight decline (on a like-for-like basis) Concessions Contracting ! VINCI Autoroutes: expected FY traffic ~ 2% ! France: decrease in public orders since municipal elections ; residential market still slow ! VINCI Airports: FY traffic expected to grow > 5% ! International: possible
Slide 28: 2014 interim dividend
Dividend 2014 interim dividend Interim dividend (all-cash) per share: €1.00 Of which exceptional: €0.45 § Ex-date: 11 November 2014 § Payment date: 13 November 2014 28
Slide 29: Strategic priorities
Strategic priorities VINCI’s priorities for sustainable, profitable growth Expand Expand Extract more value VINCI Airports the Group worldwide from our current positions ü Take advantage of ü Look for long term ü Complete motorway worldwide air traffic growth outside of stimulus plan growth Europe ü
Slide 30: Thank you for your attention
Thank you for your attention
Slide 31: Appendixes
VINCI “— Appendixes
Slide 32: Detailed consolidated financial statements
Detailed consolidated financial statements
Slide 33: Consolidated revenue
Consolidated revenue Δ∆ 14/13 € in millions 1H 2014 1H 2013 Actual Comparable Concessions 2,853 2,577 +10.7% +4.6% VINCI Autoroutes 2,199 2,112 +4.1% +4.2% VINCI Concessions 654 465 +40.5% +6.2% Contracting 15,620 16,129 -3.2% +0.1% VINCI Energies 4,356 4,419 -1.4% -2.1% Eurovia 3,641 3,603 +1.1% +2
Slide 34: Consolidated revenue – France
Consolidated revenue – France Δ∆ 14/13 € in millions 1H 2014 1H 2013 Actual Comparable Concessions 2,476 2,427 +2.0% +3.6% VINCI Autoroutes 2,190 2,105 +4.1% +4.1% VINCI Concessions 286 323 -11.4% -0.0% Contracting 9,202 9,367 -1.8% -1.5% VINCI Energies 2,607 2,652 -1.7% -0.8% Eurovia 2,321 2,308 +0
Slide 35: Consolidated revenue – international
Consolidated revenue – international Δ∆ 14/13 € in millions 1H 2014 1H 2013 Actual Comparable Concessions 377 150 ns +12.0% VINCI Autoroutes 9 8 +24.6% +36.5% VINCI Concessions 368 142 ns +11.5% Contracting 6,418 6,761 -5.1% +2.6% VINCI Energies 1,749 1,766 -1.0% -4.1% Eurovia 1,320 1,295 +2.0% +5.2
Slide 36: EBIT by business line
EBIT - operating income from ordinary activities by business line % of % of € in millions 1H 2014 1H 2013 Δ∆ 14/13 revenue* revenue* Concessions 1,124 39.4% 997 38.7% +12.8% VINCI Autoroutes 922 41.9% 891 42.2% +3.5% VINCI Concessions 202 30.9% 105 22.6% +91.9% Contracting 396 2.5% 459 2.8% -13.7% V
Slide 37: Financial income/(expense)
Financial income/(expense) € in millions 1H 2014 1H 2013 Δ∆ 14/13 Cost of net financial debt (304) (295) -8 Other financial income and expenses (23) (23) -1 Borrowing costs capitalised 8 13 -5 Liability discount cost (32) (30) -2 Foreign exchange gains and losses 0 (5) +5 Financial income/(expense) (3
Slide 38: EBITDA
EBITDA* % of % of € in millions 1H 2014 1H 2013 Δ∆ 14/13 revenue** revenue** Concessions 1,768 62.0% 1,628 63.2% +8.6% VINCI Autoroutes 1,541 70.1% 1,474 69.8% +4.6% ASF/Escota 1,105 69.8% 1,054 69.3% +4.9% Cofiroute 423 71.2% 407 71.0% +3.9% VINCI Concessions 227 34.7% 154 33.1% +47.2% Contracting 6
Slide 39: Cash flow statement (1/2)
Cash flow statement (1/2) € in millions 1H 2014 1H 2013 EBITDA* 2,387 2,383 Change in WCR and current provisions (1,208) (881) Income taxes paid (696) (690) Net interest paid (348) (372) Dividends received from companies accounted for under the equity method 50 23 Net operating investments (275) (298
Slide 40: Operating investments, net
Operating investments, net € in millions Δ∆ 14/13 1H 2014 1H 2013 Concessions 27 32 -5 VINCI Autoroutes 6 17 -10 VINCI Concessions 21 15 +6 Contracting 296 327 -31 VINCI Energies 48 48 +1 Eurovia 93 106 -13 VINCI Construction 154 173 -19 VINCI Immobilier and holdings 0 1 -1 Purchases of PP&E and int
Slide 41: Growth investments in concessions and PPPs
Growth investments in concessions and PPPs € in millions 1H 2014 1H 2013 Δ∆ 14/13 Concessions 385 362 +23 VINCI Autoroutes 322 348 -26 O/w : ASF / Escota 257 283 -26 Cofiroute 64 63 +1 VINCI Concessions 64 14 +50 Contracting -5 37 -42 Growth investments in concessions and PPPs (net) 380 399 -19 41
Slide 42: Cash flow statement (2/2)
Cash flow statement (2/2) € in millions 1H 2014 1H 2013 Free cash flow (after investments) (469) (233) Net financial investments and other cash flows 774* (214) Cash flow before movements in share capital 305 (447) Share capital increases and other operations 344 689 Dividends (690) (701) Share buy-backs
Slide 43: Net financial debt by entity
Net financial debt by entity Net financial (in € millions) 30/06/14 debt/EBITDA 31/12/13 Δ∆ 14/13 Concessions (19,492) 5.5x (20,010) 518 VINCI Autoroutes (17,606) 5.3x (15,387) (2,219) VINCI Concessions (1,886) 7.7x (4,622) 2,736 Contracting 531 - 2,129 (1,598) Holding cos & VINCI Immobilier 4,076 - 3
Slide 44: Maturity of gross financial debt
Maturity of gross financial debt ! Average maturity of gross financial debt at end June 2014: 5.6 years (Concessions: 6.1 years) 3 000 Repayment schedule at end June 2014 2 500 2 000 1 500 1 000 500 0 2H '14 1H '15 2H '15 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 > 2030 ASF
Slide 45: IR Contacts and Agenda
IR Contacts and Agenda CONTACTS AGENDA G. Christopher Welton 23 October 2014 [email protected] 3rd quarter 2014 information press release Tel: +33 1 47 16 45 07 11 November 2014 Thomas Guillois Interim dividend ex-date [email protected] Tel: +33 1 47 16 33 46 13 November 2014 Inte